N.Y. Personal Property Law § 305: Credit upon anticipation of payments

§ 305. Credit upon anticipation of payments. 1. Notwithstanding the

provisions of any retail instalment contract to the contrary, any buyer

may pay it in full at any time before the maturity of the final

instalment of the time balance thereof and if he does so shall receive

and be entitled to receive a refund credit thereon and if the contract

included an amount for group credit life insurance, the further refund

credit thereon for such anticipation, whether or not the maturity of the

time balance of the contract was accelerated by the holder by reason of

the buyer's default or otherwise. The amount of any such refund credit

shall be the unearned portion of the credit service charge, after first

deducting an acquisition cost of fifteen dollars, or, if the contract

has been extended, deferred or refinanced, the additional charge

therefor, determined according to a generally accepted actuarial method.

Where the amount of the credit for anticipation of payment is less than

one dollar, no refund need be made.

If the credit service charge imposed on the retail instalment contract

is computed pursuant to subdivision four of section three hundred three

of this article the contract may, after deduction of the acquisition

cost of fifteen dollars, be prepaid in full without penalty.

2. The amount of the further refund credit for group credit life

insurance shall be equal to the excess of the amount included in the

contract for group credit life insurance over the premiums paid or

payable by the holder of the contract for such insurance, if such

premiums were paid or payable periodically, or the refund for unearned

group credit life insurance premium received or receivable by the holder

of the contract, if such premium was paid or payable in a lump sum,

provided that no such further refund credit need be made if the amount

thereof would be less than one dollar.

3. In the event (i) the maturity of the contract is accelerated due to

the default of the buyer or otherwise and judgment is obtained, or (ii)

repayment is made pursuant to group credit life insurance, the buyer or

his legal representative, as the case may be, shall be entitled to the

same refund credits as if the contract had been prepaid in full on the

date of acceleration or repayment.